Partnership Closes $37M Deal to Preserve 1K-Plus NYC Affordable Housing Units
The majority of the proceeds from the transaction will be used to capitalize the Blue Sky Social Justice Fund.
Affordable housing is a scarcity in New York City, but one partnership is preserving more than 1,000 units with its latest acquisition.
The Community Preservation Corporation (CPC), The Community Development Trust (CDT), Monadnock Development, Red Stone Equity Partners and the Black Developers Network Triboro (BDN Triboro) have closed a $36.5 million deal to purchase and preserve a 13-building affordable housing portfolio totaling 1,036 units, Commercial Observer can first report.
The buildings span 10 properties developed by the Dunn Development Corp., and are situated in Manhattan, the Bronx and Brooklyn. All of the apartments will remain affordable for low-income tenants, and proceeds from the deal will capitalize a newly formed charitable organization focused on social justice and human rights, the Blue Sky Social Justice Fund. The seller was represented by Victor Sozio and Shimon Shkury of Ariel Property Advisors.
“We’re so pleased to have found the perfect long-term stewards for this portfolio of affordable and supportive housing buildings we care so much about,” said Martin Dunn, founder and president of Dunn Development Corp. “With the proceeds supporting social justice and human rights, this is a win many times over.”
Eric McClelland, chairman and CEO of Red Stone Equity, said the transaction provided “a rare opportunity to achieve many important objectives,” and further deepens Red Stone Equity’s commitment to preserving affordable housing in New York City.
The portfolio includes affordable apartments that were constructed between 2011 and 2017. All feature income-restricted rents, primarily at levels affordable to tenants earning at or below 60 percent of area median income.
Many of the portfolio buildings also include supportive housing components, combining affordable housing with onsite support services. Two of the 10 properties were co-developed by Dunn Development Corp. and L+M Development Partners.
BDN Triboro is a 100 percent Black-owned entity focusing on affordable housing and community development. Led by affordable housing experts Kirk Goodrich and Richard Roberts, BDN Triboro is the partners’ first venture outside of their existing roles at Monadnock and Red Stone Equity, respectively, although it won’t be their last. The intention of BDN Triboro is to continue to pursue additional affordable housing and community development opportunities that present themselves in the future.
“We are excited to joint venture in a way we haven’t before, with a team of outstanding companies,” said Goodrich, president of Monadnock and managing member of BDN Triboro.
Rafael Cestero, CEO of The Community Preservation Corporation, said the CPC is “proud to partner with a first-class group of companies that share our mission to preserve the long-term affordability and quality of these properties for the tenants and their families.”
The Blue Sky Social Justice Fund is being created to support social justice and human rights efforts, including issues related to climate justice, LGTBQI+ rights, water and energy access and anti-slavery. Additional proceeds from the transaction will provide financing to the Black Developers Network.
“CDT is proud to partner with mission-aligned companies to preserve these irreplaceable buildings as high-quality, affordable housing for the long-run,” said Joseph Reilly, president and CEO of The Community Development Trust.
“We are proud to be a partner in this venture to continue the stewardship, investment and careful oversight of high-quality, affordable housing,” Nick Lembo, chairman of Monadnock Development, added.
Emily Fu can be reached at: efu@commercialobserver.com.
